Taxpayers who financed their car would be allowed to write off the interest on those loans in House Republicans’ sweeping tax bill, codifying one of President Donald Trump’s key priorities from the campaign trail.
Debt payments for automobiles used for business purposes can already deducted. But Republicans’ tax bill aimed at enacting a suite of Trump’s legislative priorities would extend that benefit to consumers who own American-made cars.
The above-the-line deduction would be capped at $10,000 and expire at the end of Trump’s current term. The benefit would start to be phased out for taxpayers making more than $100,000, or $200,000 for those filing joint returns.
Republicans hope the new exemption will help auto buyers riding the wave of tariff threats emanating from the White House. Treasury Secretary Scott Bessent, who is leading negotiations on new trade deals, in particular has promoted the idea.
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